Department of Industry, Energy and Technology (IET)

Business Investment Fund – Business Development Support Program

by Maurice | February 6, 2023

Amount:

$100,000

Type of Program:

Grants

Description:

The Business Development Support Program assists Newfoundland and Labrador SMEs with opportunities to increase their productivity and improve their competitiveness. Funding is available for productivity improvements, knowledge development, market development and/or professional technical advice.

Comments on Funding:

Funding is in the form of a non-repayable contribution(s) to a maximum amount of $100,000 per government fiscal year.

The contribution level will be up to 50% of eligible costs, with the business identifying their access to the remaining funding to complete the project(s).

When It Ends:

Ongoing

Deadline:

Rolling Deadline

Eligibility:

The applicant must:

be a SME based and operating in Newfoundland and Labrador having fewer than 100 employees and less than $10 million in sales
demonstrate a desire to develop and grow by improving the operations of the business, investing in its people, and focusing on trade opportunities,
demonstrate its ability to undertake the work identified in the project proposal,
demonstrate its ability to access the financial capital required to complete the project,
operate in a strategic sectors that normally focus on export markets and/or improve import substitution,
be in good standing with the Government of Newfoundland and Labrador.

Application Steps:

The applicant must submit a signed, completed application with supporting documentation to the office of Industry, Energy and Technology (IET) in his area.

Documentation Needed:

The applicant must submit:

the application form
a business plan and project summary & Benefits,
financial statements for the current and previous two to five years of operation including notes to the financial statements and the most recent interim statements. If a proprietorship, include recent and previous two to five years personal income tax returns including CRA T2125 form and Notice of Assessment, if an existing business,
a copy of the Articles of Incorporation,
a Personal Net Worth Statement for all shareholders and key management personnel (loans/equity investments only),
a Cash Flow Statement and pro forma statements for the next two to five years including Balance Sheet and Income Statement with detailed assumptions supporting revenue forecasts, if an existing business,
Income Statement and Opening Balance Sheet, a Cash Flow Statement and pro forma statements for the next two years including Balance Sheet and Income Statement with detailed assumptions supporting revenue forecasts, if a new business,
any supplementary information that may be relevant to his operation.

For larger, more complex projects a more detailed Business Plan, a Feasibility Study and/or Market Study may be required.

Other Things to Note:

The Business Investment Fund provides a source of funding to business and economic sectors in Newfoundland and Labrador that responds to the changing needs of enterprises. The Business Investment Fund is comprised of two components: the Business Investment Program and the Business Development Support Program.

Program Contact:

Business Development Support Program

Application for Assistance

Business Investment Fund – Business Investment Program

by Maurice | February 6, 2023

Amount:

$1,000,000.00

Type of Program:

Loan & Investment

Description:

The Business Investment Program provides term loans and equity investments to Newfoundland and Labrador SMEs in strategic growth sectors as identified by Industry, Energy and Technology (IET). The fund is also available to businesses which have export potential and require assistance to enter or expand in external markets.

Funds are provided to complement funding from conventional sources, where a need has been demonstrated, and are also intended to increase the capital base of businesses allowing them to leverage new private-sector investments.

Comments on Funding:

Funding is in the form of repayable term loans at the department's base rate of 4,5%.

Equity funding is in the form of redeemable preferred shares to a maximum of $500,000 per project and a maximum aggregate of $1 million is available.

When It Ends:

Ongoing

Deadline:

Rolling deadline

Eligibility:

The applicant must:

be a SME based and operating in Newfoundland and Labrador having fewer than 100 employees and less than $10 million in sales,
demonstrate its ability to undertake the work identified in the project proposal,
demonstrate its ability to access the financial capital required to complete the project,
operate in a strategic sector as defined by IET,
be in good standing with the Government of Newfoundland and Labrador.

Strategic sectors: Advanced Technologies, Aerospace, Agri-foods, food and beverage, Aquaculture, Biotechnology and Life Sciences, Craft, Gift and Apparel, Energy, Environmental Industries, Fishery (excludes fish harvesting and primary processing), Forest Products, Information and Communications, Technology, Manufacturing, Ocean Technology, Mineral Resources, Natural Stone, and Tourism and Cultural Industries.

Application Steps:

The applicant must submit a signed, completed application with supporting documentation to the office of Industry, Energy and Technology (IET) in his area.

Documentation Needed:

The applicant must submit:

the application form,
a business plan and project summary & Benefits,
financial statements for the current and previous two to five years of operation including notes to the financial statements and the most recent interim statements. If a proprietorship, include recent and previous two to five years personal income tax returns including CRA T2125 form and Notice of Assessment, if an existing business,
a copy of the Articles of Incorporation,
a Personal Net Worth Statement for all shareholders and key management personnel (loans/equity investments only),
a Cash Flow Statement and pro forma statements for the next two to five years including Balance Sheet and Income Statement with detailed assumptions supporting revenue forecasts, if an existing business,
Income Statement and Opening Balance Sheet, a Cash Flow Statement and pro forma statements for the next two years including Balance Sheet and Income Statement with detailed assumptions supporting revenue forecasts, if a new business,
any supplementary information that may be relevant to his operation.

For larger, more complex projects a more detailed Business Plan, a Feasibility Study and/or Market Study may be required.

Program Contact:

Business Investment Program

Application for Assistance

Economic Diversification and Growth Enterprises (EDGE)

by Maurice | February 6, 2023

Amount:

No Fixed Amount

Type of Program:

Rebate

Description:

The Economic Diversification and Growth Enterprises (EDGE) Program provides incentives to encourage significant new business investment in the province to help diversify the economy and stimulate new private sector job creation, particularly in rural areas.

Comments on Funding:

The following incentives and benefits may apply:

1
100% rebate on provincial corporate income tax and the provincial health and post-secondary education (payroll) tax. The tax “holiday” for eligible companies is 10 years within the Northeast Avalon area and 15 years outside the Northeast Avalon area, as defined in the Economic Diversification & Growth Enterprises Act,
2
50% rebate on federal corporate income tax for the periods referenced above,
3
A further five-year phase-out period of partial rebates on the provincial and federal taxes referenced above, declining by 20% in each year of the phase-out period,
4
100% rebate on municipal property and/or municipal business taxes for 10 or 15 years, followed by a five-year phase-out of such rebates, where individual municipalities elect to participate in the EDGE program,
5
access to unserved Crown land for $1.00 where such land is required to implement the company’s business plan.

When It Ends:

Ongoing

Deadline:

Rolling deadline

Eligibility:

The applicant must:

be new or existing businesses,
have the potential to create and maintain at least 10 new permanent jobs in Newfoundland and Labrador,
be prepared to make a minimum capital investment of at least $300,000, or generate incremental sales of at least $500,000 annually,
not be able to establish or expand in the province in the absence of the EDGE incentives, in preference to another location or at the time when it is proposed to do so,
have a substantial net economic benefit to the province,
not receive a direct competitive advantage over other businesses already established in the province, if provided EDGE status.

Application Steps:

Applicants must submit a signed, completed application with supporting documentation to the office of Department of Industry, Energy and Technology (IET) in their area.

Documentation Needed:

Applicant must submit:

a detailed business plan,
Project Summary & Benefits, including project description, project budget, ownership and management information, competition and marketing information,
financial statements for the current and previous two to five years of operation including notes to the financial statements and the most recent interim statements. If a proprietorship, include recent and previous two to five years personal income tax returns including CRA T2125 form and Notice of Assessment., if existing businesses,
Income Statement and Opening Balance Sheet, if new businesses,
a Cash Flow Statement,
pro forma statements for the next two to five years including Balance Sheet and Income Statement with detailed assumptions supporting revenue forecasts,
copy of Articles of Incorporation,
personal Net Worth Statement for all shareholders and key management personnel (loans/equity investments only),
other information that may be relevant to their operation.

For larger, more complex projects a more detailed Business Plan, a Feasibility Study and/or Market Study may be required.

Program Contact:

Economic Development and Growth Enterprise Program (EDGE)

Application for Assistance

Fisheries Loan Guarantee Program

by Maurice | February 6, 2023

Amount:

$3,000,000

Type of Program:

Loan Guarantee

Description:

The Fisheries Loan Guarantee Program supports the development of the province's independent fish harvesting industry by providing a government guarantee on loans through local chartered banks for the construction or purchase of marine vessels and/or to purchase new engines and fishing equipment for the improvement, rebuilding or alteration of existing vessels. Loans may also be approved to refinance loans previously obtained from fish processors for fixed asset costs.

Comments on Funding:

The program offers loan guarantees for combining of enterprises up to $3 million; vessel-related items up to $2 million, and license acquisitions up to $1,5 million.
The Provincial Government’s guarantee can provide up to 100% of an outstanding loan.
Guaranteed loans are offered at the financial institution prime rate, as negotiated between the harvester and the lender, to a maximum of prime plus 2% or 2.5%, depending on the term of the loan.
10-15% down payment and adequate security are required.

When It Ends:

Ongoing

Deadline:

Rolling deadline

Eligibility:

The applicant must:

be entities, individuals or groups,
be a Canadian citizen/entity and a resident of Newfoundland and Labrador,
harvesters must be registered full time as certified by the Professional Fish Harvesters Certification Board and eligible to hold a commercial fishing license,
have a favorable credit record and demonstrate commercial viability, including the ability to repay the loan.

Application Steps:

Applicants must apply directly to the financial institution, which in turn will request the guarantee from the Provincial Government.

Documentation Needed:

Applicants must submit:

1
the Fisheries Loan Guarantee Application Form;
2
previous and current years income and expense statements (income tax returns are acceptable);
3
two years forecast of revenues and expenses;
4
details of historical and forecast revenues according to: species, volumes and price; and
5
a recent balance sheet detailing the businesses assets and liabilities, if incorporated.

Program Contact:

Fisheries Loan Guarantee Program

Fisheries Loan Guarantee Application

fisheries_loan_insert.pdf

Innovation and Business Development Fund (IBDF)

by Maurice | February 6, 2023

Amount:

No Fixed Amount

Type of Program:

Grants

Description:

The Innovation and Business Development Fund is focused on investments to grow and diversify Newfoundland and Labrador’s oil and gas supply and service capabilities. The fund provides funding to commercial and non-commercial applicants for business development, emerging technologies and industry diversification. The fund supports The Way Forward on Oil and Gas - Advance 2030: A Plan for Growth in the Newfoundland and Labrador Oil and Gas Industry.

Comments on Funding:

Project funding will normally not exceed 50% as a non-repayable contribution.
Other Provincial Government funding is ineligible as project financing (i.e., no duplication of provincial funding sources will be permitted).
Multi-year commitments may be considered based on the business case for the investment and are subject to the available budget and additional approval requirements.

When It Ends:

Ongoing

Deadline:

Rolling deadline

Eligibility:

The applicant must:

non-commercial: industry associations, business development organizations, postsecondary education institutions and other support groups in Newfoundland and Labrador involved in oil and gas projects,
commercial: registered businesses, primarily small-and-medium sized enterprises (SMEs), with operations in Newfoundland and Labrador.

Application Steps:

Applicant should contact an IET or TCAR office in your region prior to developing a proposal,

Applicant must submit a detailed proposal and a completed application with supporting documentation to the Department of Tourism, Culture, Industry and Innovation (TCII) office in their area.

Documentation Needed:

Applicant must submit:

a detailed proposal and a completed application - both are required,
their latest financial statements (commercial projects only),
the qualifications/resumes of key project management personnel,
letters of support (financial and non-financial),
financial projections (commercial projects only),
cost estimates for the purchase of specialized equipment, building renovations, and purpose-built supply and service infrastructure,

any information or resource materials referenced in the proposal,
copies of required permits, licenses and/or environmental approvals,
copies of relevant contracts and agreements,
copies of any detailed design work, engineering or other studies that support the proposal.

Other Things to Note:

The Departments of Industry, Energy and Technology, and Tourism, Culture, Arts and Recreation are co-administering the fund, ensuring coordination with the programs of the Innovation and Business Investment Corporation. The fund supports The Way Forward on Oil and Gas - Advance 2030: A Plan for Growth in the Newfoundland and Labrador Oil and Gas Industry.

Program Contact:

Innovation and Business Development Fund

IBDF-Mar-2021.pdf

Innovation and Business Development Fund Applicant Guide

App_Comm_IBDF_Fillable_PDF.pdf

App_Non_comm_IBDF_Fillable_PDF.pdf